Efficient cross-border trade a boon for LDC graduation: ICCB

With the increase in international trade of Bangladesh, efficient cross-border trade will have notable implications for the country's status graduation from the least developed country (LDC) to a developing one, said Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh (ICCB).

"Therefore, understanding the foreign business partners is crucial," he told a workshop on "Trade Finance Legal Challenges and International Sanctions Regime & Requirements" on Saturday.

The ICCB, credit rating agency Moody's and ICC United Arab Emirates (UAE) jointly hosted the event at Renaissance Dhaka Gulshan Hotel in the capital.

Financing of international trade transactions plays a crucial role in facilitating global commerce, said Rahman.

However, the whole process operates within a complex legal framework shaped by regulatory requirements, including sanctions, presenting significant challenges for financial institutions and businesses dealing with international trade, he said.

"Therefore, financial institutions and businesses must navigate a labyrinth of sanctions imposed by various jurisdictions," he said.

"These sanctions can target specific countries, entities, or individuals, and often differ between regions, leading to complexities in ensuring compliance," Rahman said.

Banks are obligated to conduct thorough due diligence to prevent money laundering and terrorist financing, he said.

This involves verifying the identities of clients and understanding the nature of their business activities, which can be resource-intensive and legally complex, he added.

The ICCB president highlighted the recent trades in the global economic and political arena and added that the evolving geopolitical landscape has increased the compliance requirements for banks and businesses engaged in international trade.

To navigate these challenges, financial institutions and businesses should establish comprehensive policies follow regulatory requirements and educate employees on the latest developments in sanctions, laws and compliance obligations, he added.

ICCB Secretary General Ataur Rahman moderated the workshop.

Mohamed Daoud, director and industry practice lead for Moody's Financial Crime Compliance across the Middle East and India, and Vincent O'Brien, director of ICC-UAE, were present.